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Shiba Inu price is preparing for a massive bullish breakout as its token burn accelerates, the crypto fear and greed index remains in the green zone, and a bullish pattern forms.
Shiba Inu (SHIB), second-biggest meme coin, was trading at $0.000026 on Tuesday, Nov. 19, slightly above last Friday’s low of $0.0000246. It has jumped by 142% from its lowest level in August.
SHIB’s rebound occurred as data from Shiburn showed that the number of Shiba Inu tokens burned on Tuesday surged by almost 940% to 3.69 million. This burn brought the total number of burnt SHIB tokens to over 410 trillion, while its circulating supply stood at 583.7 trillion tokens.
Shiba Inu’s token burn involves sending tokens to a wallet without a key, effectively removing them from circulation. These tokens come from its ecosystem networks like Shibarium and ShibaSwap, as well as voluntary contributions by community members.
Shiba Inu is also recovering as the crypto fear and greed index remains in the extreme greed zone at 83. Historically, altcoins tend to perform well when there is a heightened sense of greed in the crypto market.
This sentiment has also driven gains in other meme coins, bringing the total market cap of the meme coin sector to $128 billion. This valuation surpasses that of large companies such as Lockheed Martin, Palo Alto Networks, ADP, and Airbus.
Shiba Inu price has formed a bullish pattern
The outlook for Shiba Inu remains bullish, as the coin has formed a highly bullish pattern on the daily chart. It displays a cup and handle formation, characterized by a rounded bottom followed by a pullback or consolidation near the top.
The coin is in the process of forming the handle section. A break above the upper side of the cup at $0.00002933 could signal further gains, with the next target being the year-to-date high of $0.000045—76% higher than the current level.
Shiba Inu remains above the 50-day moving average, while the Market Value to Realized Value indicator has climbed above 3. However, a drop below the key support level at $0.000020 would invalidate the bullish outlook.
This article first appeared at crypto.news
